Shares in Airbus SA
rose Thursday after the company posted first-quarter earnings above market expectations and said it would boost future production rates for its A320.
The European plane maker reported adjusted earnings before interest and taxes–a key profitability metric–of 1.26 billion euros ($1.34 billion) for the quarter, up from EUR694 million a year earlier. The figure beat analysts’ forecasts of EUR719 million. Net profit jumped to EUR1.22 billion, beating analysts’ views of EUR460 million.
At 0756 GMT shares traded 7.9% higher at EUR110.72.
The company also said it would boost global production of the A320 family of narrow-body jets to 75 a month starting in 2025, up from around 50 currently. The company had previously said it was planning to increase production to 65 a month by the summer of next year.
The planned production boost was the most meaningful takeaway from the company’s first-quarter results as the market was doubtful, and that this was being reflected in the share price, Citi analyst Charles J. Armitage said in a research note. “There still is doubt, but we feel this is now definitely an execution issue, that Airbus and supply-chain now need to execute on, rather than an ethereal hope, giving upward pressure on long-term valuation,” Mr. Armitage said.
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